Digi Power X Inc. (NASDAQ: DGXX) saw its stock surge approximately 30% in late-morning trading on Tuesday after announcing a landmark 10-year master services agreement with Cerebras Systems. The deal, valued at roughly $1.1 billion, involves the development of a 40-megawatt AI colocation data center campus in Columbiana, Alabama, with the potential to reach $2.5 billion if all renewal options are exercised.
The agreement comes at a pivotal moment for Cerebras, which launched its initial public offering roadshow on Monday. The AI chipmaker aims to debut on the Nasdaq under the ticker CBRS, selling 28 million shares priced between $115 and $125 each. By securing a guaranteed data center buildout, Cerebras strengthens its capacity narrative for investors evaluating the latest wave of AI infrastructure IPOs.
Digi Power X shares opened at $5.33, hit an intraday high of $7.26, and settled around $5.145 by late morning, reflecting a gain of roughly 30%. More than 85 million shares changed hands, indicating significant market interest and volatility. The company is pivoting further from its legacy power and mining operations toward AI infrastructure, having recently signed a bare-metal GPU rental agreement with SubQ AI on April 20, worth approximately $19.6 million.
The Alabama campus will be built in two phases: an initial 15 MW IT load followed by an additional 25 MW. The facility will meet Tier III standards, allowing maintenance without taking critical systems offline. Construction on the first phase begins immediately, with service targeted for December 15, 2026, and full completion expected by the end of the first quarter of 2027. Digi Power X owns the property, has completed the on-site substation for Phase 1, secured grid interconnection, and locked in a power delivery agreement with Alabama Power.
Chairman and CEO Michel Amar described the contract as "transformational," stating that the company now fully sees itself as a data center operator. President Alec Amar called the move "a statement," while Hans Vestberg, senior adviser and former Verizon CEO, highlighted high-density AI infrastructure as one of the defining challenges of this generation.
The deal positions Digi Power X in a fiercely competitive market for AI data center infrastructure. CoreWeave recently secured a $21 billion cloud capacity agreement with Meta, with capital spending plans reaching up to $35 billion this year. Applied Digital has also seen gains amid surging demand for major AI facilities, as reported by Reuters.
However, risks remain. Revenue is not expected until late 2026, and hitting that target depends on completing the 40-MW campus as planned. Digi Power X has flagged its securities as highly speculative, citing possible shifts in the agreement, future funding requirements, construction hurdles, and delays in sourcing long-lead equipment. The company claims it operates a mix of power assets and data center sites in Alabama, New York, and North Carolina, totaling roughly 400 MW of secured power. The Cerebras agreement adds weight to the company's narrative, but the real test will be delivering on the contract with powered racks in Alabama on schedule.
